‘Calculation error’ exaggerates C.Banner loss
The C.Banner loss for last year is not quite as bad as first reported.
After requesting a trading halt on its shares late last week, the troubled Hong Kong-listed retail company released updated financial information declaring a “calculation error” had exaggerated its loss in the December year. Having earlier reported an impairment loss of RMB295.051 million (US$43.8 million) it now says the impairment should have been RMB185.52 million ($27.6 million).
That produced a net loss attributable to shareholders of RMB387 million ($57.4 million).
C.Banner is currently trying to offload its Hamley’s toy retailing business which it acquired in 2015 for US$130 million. Sources in India are speculating Reliance Retail will pay between $36 and $50 million for Hamleys, representing a substantial loss for C.Banner on exiting the brand.
C.Banner’s sales last year reached RMB2.93 billion, a 4.6 per cent decline from the RMB3.06 billion the previous year. Gross profit decreased by 10.2 per cent to RMB1.67 billion.
The company said the impairments related to “goodwill and other intangible assets”.